Let to Buy Interest Tax Relief

by Readers Question

10:23 AM, 29th January 2018, 8 years ago 11

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Landlord News Landlords Questions

This question is for the tax year 2016-2017. My wife and I did a ‘Let to Buy’ on a flat we owned. At the time, we owed 125,000 to the bank and when we took out our buy to let mortgage we increased the borrowing to 250,000.

£125,000 we used as a deposit on our new home that we live in.

When working out my tax can I claim the full tax relief on Mortgage Interest payment, Mortgage arrangement fee’s, Solicitors fee’s.

Or as half the money was used for the purchase of my home I can only claim half as tax deductible on the items above.

Also going forward will this apply in subsequent years.

Thanks

Matt

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Comments

Member Since January 2018 - Comments: 1

3:50 PM, 30th January 2018, About 8 years ago

Thanks for all the prompt help on this topic. I believe I have found an example from HMRC that backs up the great advice to my question.
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45700
Example 2

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